Maharashtra chit funds act, 1974 complete act bare act. Be it enacted by parliament in the thirtythird year of the republic of india as follows. In exercise of the powers conferred by the section 89 of the chit funds act, 1982 central act, 40 of 1982, and in supersession of the tripura chit fund rules 1987. While the deposit taking activities of, such firm is regulated by the reserve bank of india.
Organised chit fund schemes are required to register with the registrar or firms, societies and chits. An act to provide for the regulation and control of chit funds in the state of maharashtra. In exercise of the powers conferred by subsection 3 of section 1 of the chit funds act. Government of kerala published the chit fund rules 201204062012 notification government order nog. Over five decades ago, margadarsi chit fund showed the people of andhra pradesh the way for a happier life. Chit funds act 1982 court karnataka judgments legalcrystal. Government of kerala taxes c department notification.
Central chit fund act chit fund companies bangalore. Subsection 3 of section 1 of the act, inter alia, confers powers upon the central government to appoint different dates for commencement of the said act for different states. Maharashtra chit funds act 1975 blogs, comments and archive news on. The chit funds act 1982 in india bare acts, banking and insurance, business and corporate, constitutional, consumer laws, criminal law, energy, environmental, family and inheritance, heritage and national importance, immigration law, labor law, the chit funds act 1982 national security, others, procedural and administration, property related, public utilities, shipping laws, tax laws. Company registered office is in the state of maharashtra. In india, the chit funds are governed regulated by.
One key guideline is regarding the discount that a member is willing to take on the chit. I an act to provide for the regulation of chit funds in the pstae of tamil nadu. Some alone, get the price money without obligation of paying future installments. Nov 17, 2014 an investor should read the fine print of the chit fund scheme. Chit fund companies are widely famous with their name known as committee. A chit fund is a type of rotating savings and credit association system practiced in india. The chit funds act 1982 lays down some important ground rules for chit funds. Received the assent of the president on the 22nd june 1 961. This act has been repealed by the chit funds act, 1982 40 of 1982 see section 90. Chit funds act 1982 court supreme judgments legalcrystal. This act will extends to whole of india except the state of jammu and kashmir.
It shall come into force on such date as the central government may, by notification in the official gazette, appoint, and different dates may be appointed for different states. It is a form of nonbanking financial company which is engaged in the principal business of. Most importantly, it should be verified if the fund as necessary approval from the regulatory body, governed by the chit funds act 1982. Foreman to allow certain subscribers to inspect chit records. Short title, extent and commencement 1 this act may be called the chit funds act, 1982. Is it required for all chit fund companies to register under chit fund act. Chit funds in india are governed by the chit funds act, 1982.
The chit funds act, 1982 was enacted to provide for the regulation of chit funds and for matters connected therewith. Mos finance anurag thakur moved the bill to amend the chit funds act, 1982, to put in place mechanisms to ensure transparency in chit fund schemes. Subsequently the company needs to file a chit agreement with every. The objects should be as per the concerned state chit fund act, correct the objects and file with due compliance. I also want the address where this can be done and the documents required. In this act, unless the context otherwise require, aapproved bank means the state bank of india constituted under section 3 of the state bank of india act, 1955 23 of 1955, or a subsidiary bank constituted under section 3 of the state bank of india subsidiary banks act, 1959 33 of 1959, or a corresponding new bank constituted under section 3 of. Be it enacted by the karnataka state legislature in the fiftyeighth year of the republic of india as follows. Copies of chit agreement to be given to subscribers. Dec 25, 2016 chit funds in india are governed by various state or central laws. Other similar names to chit fund are chitty or kuri. Chit fund companies are governed by chit fund act 1982 and rbi has.
Financial intelligence unit india, ministry of finance, govt. The chits funds act,1982 be it enacted by parliament in the thirtythird year of the republic of india as follows. The turnover of all these are estimated to be around rs. The chits funds act,1982 statement of objects and reasons 1a. A chit fund company is a company that conducts, manages, or supervises such a chit fund. Documents required for chit fund company registration.
In exercise of the powers conferred by subsection 3 of section 1 of the chit funds act, 1982 40 of 1982, and subsection 2 of section 1 of the chit funds amendment act, 2001 10 of 2001, the central government hereby appoints 15th june, 2004, as the date on which the said provisions of those acts shall come into force in the state. The operations of the chit fund company are governed by the chit fund act, 1982, administered by the state governments. Amended chit fund act brings tighter norms, transparency. According to this act, chit fund businesses can be registered and regulated only by the respective state governments. Now chit funds are trying to carve out a cleaner identity, a campaign that culminated in a slew of amendments to the chit fund act. Definition according to section 2b of the chit fund act, 1982, chit means a transaction whether called chit, chit fund, chitty, kuri or by any other name by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money or a certain quantity of grain instead. Chit funds act 1982 defines a chit fund company as a company which conducts, manages and supervises a chit fund scheme. Nov 24, 2017 while the concept of chit funds has been very popular in south india for several decades, other states in the country have also adopted the chit fund concept in recent times.
In exercise of the powers conferred by section 89 of the chit funds act, 1982, central act 40 of 1982, the government of. Various state and central regulations regulate chit funds in india. Chit fund companies are governed by chit fund act 1982 and rbi has specifically exempted from its core provisions. The chit funds act 1982 blogs, comments and archive news on. The hindu quoted that there are almost 193 registered chit funds which are operating in bangalore and registered under the chit fund act 1982. The chit funds act, 1982 was enacted to provide for the regulation of chit funds which are indigenous business in india and have conventionally satisfied the financial needs of. A chit fund is a very popular type of savings scheme in india it is one of the main parts of the unorganized money market industry. According to section 2b of the chit funds act, 1982. An act to provide for the regulation of chit funds and for matters connected there with. Appointment of authorities under chit fund act, 1982. The andhra pradesh chit funds act, 1971 the andhra pradesh chit funds act, 1971 act no. Pdf on jun 1, 2002, james manalel and others published chit financing find, read and. The chit fund act, 1982 act 40 of 1982 statements of objects and reasons1 a conventional chit, is, in law, a contract between the subscribers and the fore man which provides that the subscribers shall subscribe a certain sum by periodical installments for a definite period.
Government of kerala taxes c department notification g. Form of application to be used by a foreman for obtaining prior sanction to commence or conduct a chit and statement of particulars 204. The regulator of chit funds is the registrar of chits. Notification in exercise of the powers conferred by section 89 of the chit funds act, 1982 central act, 40 of 1982, the government of andhra pradesh, in consultation with the reserve bank of india, hereby makes the following rules chapter i. The chit funds act, 1982, is within the leigislative competence of the parliament. Chit funds act, 1982 mylegalwork online legal help. The estimated turnover of registered chit companies all over india as of now is exceeding rs 35,000 crores per annum. This act has been repealed by the chit funds act, 1982 40 of 1982 see section 90 repeal and savings.
Twentysecond dear of the republic of india as follows. Any person or company intends to carry chits business shall obtain prior sanction order p. Chit means a transaction whether called chit, chit fund, chitty, kuri or by any other name by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a. Read all details about the chit fund company, which includes, how chit fund works. It extends to the whole of india except the state of jammu and kashmir. Credit associations pdf, williams college, archived from the original pdf.
In exercise of the powers conferred by section 89 of the chit funds act, 1982 central act, 40 of 1982, the government of andhra pradesh, in consultation with the reserve bank of india, hereby makes the following rules. Regulator of chit funds is the registrar of chits appointed by respective state governments under section 61 of chit funds act. Pradesh, gujarat, haryana, kerala, maharashtra, mizoram, nagaland and the newly formed states for. Chit means a transaction whether called chit, chit fund, chitty, kuri or by any other name by or. Chit funds act, 1982 bare acts law library advocatekhoj. Chit means a transaction whether called chit, chit fund. An act to provide for the regulation of chit funds and for matters connected therewith. The law governing and regulating the business of chit fund in india is the indian chit fund act, 1982 herein after referred to as the act. According to a report of asian development bank, the turn over of some 1066 chit fund companies, as far back as 1986 was, an astounding rs. Chit fund act department of goods and services tax. The act says that the prize money, net of the foremans commission, cant be less than 60% of the total value of the chit. Appendix ii table of fees, levy of fees under sections 62 and 63 of the chit funds act, 1982, pdf icon 195. Statement of objects and reasons 1a conventional chit. Notification under chit funds act, 1982 appointments.
According to the definition given by chit funds act 1982, chit means a transaction whether called chit, chit fund, chitty, kuri or by any other name by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money or a certain quantity of grain instead by way of periodical installments over a definite period. In the chit funds act, 1982 central act 40 of 1982. At the central level, the chit funds act 1982 governs chit funds. Organised chit fund schemes are required to register with the registrar of firms, societies and chits. Be it enacted by the legislature of the state of andhra pradesh in. Considering the intent of the legislation and the wording of sec. Chit fund act 1982 is a central act to provide for the regulations of the chits fund business and for the matters related thereon. Subscribers dues to be first charge on chit assets. The business in india is regulated under the chit fund act, 1982. Under this act, the chit fund businesses can be registered and regulated only by the respective state governments. The chit funds act 1982 latest breaking news, pictures, videos, and special reports from the economic times. The petitioners have come forward to challenge the order dated 02. A chit fund is a type of savings scheme practised in india, besides other forms of savings scheme offered by various public and private sector banks, post offices, insurance corporations etc. A chit fund company is a company that manages, conducts, or supervises such a chit fund, as defined in section of the chit funds act, 1982.
However, the respective state governments appoint them under section 61 of the chit funds act. Due to the rigid provisions of the 1975 kerala chitties act, many fund. Short title and commencement 1 these rules may be called the kerala chit funds rules 2012. Under the act chit fund act department of goods and. These changes have become operative from the beginning of this year. At this juncture, a mention on the central chit fund act, 1982 seems apt. Sahakara sindhu department of cooperation, government of karnataka. Balussery provides chit funds services in mumbai,a central location with easy access to sionmatunga kings circle and koliwada stations and very close to sion bus depot, it soon entered the heart of the people of aamchi mumbai and across part ofmaharasthra, check our monthly schemes and plans. Get name, address and contact details for chit funds in maharashtra, india. May 09, 20 below are the important findings and must known points of the chit fund act 1982. Section 2b of the under chit fund act 1982 defines chit as. It is a sort of a savings scheme practised in india. Chit funds are indigenous financial institutions in india that cater to the financial needs of the lowincome households, which have been excluded from the formal financial system. Dated 22nd november, 1974 for statement of objects and reasons, see maharashtra government gazette, part v, page 982.
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